BTC-“Weekly Supports”

1-Day Analysis:

Big Picture: Bitcoin plunged vertically after losing the supporting zone that had previously kept price from taking such an aggressive stance. Price has fallen to weekly support levels, with very oversold circumstances on the daily time frame. The selling pressure is still quite high, but considering the oversold conditions, an aggressive wave of short-covering cannot be ruled out. The volatility index is approaching support levels once more, which could contribute to an active price activity for Bitcoin.

On the Upside Price lost the daily support levels during Friday’s session, and these levels afterwards worked as key resistance levels during the weekend, preventing any aggressive rounds of short-covering. Price is expected to face major resistance from these levels between 26,250 and 26,600. If price gains enough momentum to break through these levels, short-covering rounds will intensify, pushing price higher towards 27,125, followed by 27,800.

On the Downside Bitcoin has very strong support presence between the levels of 25,280 to 24,830. These are weekly support levels that are quite important. If price holds these supports in the next hours, a bearish re-test towards higher levels could be initiated. However, for sellers, these supports represent another difficult terrain. Fresh selling pressure will only be generated if the price begins to breach the weekly supports.